In today’s digital era, effective leadership is a cornerstone for sustainable organizational success. As companies navigate increasingly complex challenges of digital transformation and sustainability, the role of leaders in shaping workplace culture, driving performance, and retaining talent has come under intense scrutiny. Through a comprehensive literature analysis, this paper examines the intricate relationships between leadership traits, employee engagement, turnover rates, and sustainable organizational success in this digital age. This research explores a range of digital-era leadership traits using exploratory factor analysis. Findings reveal that digital literacy, inclusive communication skills, vision for sustainability, and proficiency in remote team management are among the most influential leadership traits in promoting employee engagement, talent retention, and sustainable organizational success in the digital age. Leaders who demonstrate these qualities create a culture of innovation, digital fluency, and shared commitment to sustainability, significantly reducing turnover rates and improving productivity and long-term organizational viability. Ultimately, this paper seeks to illuminate the pivotal role that effective leadership plays in propelling organizations toward sustainable success in an ever-evolving technology-driven marketplace. This research contributes to the growing body of knowledge on leadership effectiveness in the digital age. It provides practical insights for organizations seeking to develop strong, digitally savvy leaders, retain top talent, and achieve sustainable growth in today’s competitive and environmentally conscious market.